Financial literacy is a skill that will help you make the right financial decisions and stay on top of your finances. It can teach you to be frugal and delay gratification. Having this knowledge will also help you save and invest for the future. Financial literacy will help you build your American Dream and create a long and satisfying retirement.
Developing financial literacy can help you avoid dangerous debt levels and damage to your credit rating. Regardless of your age, you should know about income taxes and retirement planning. Without this knowledge, you can quickly rack up debts that are unsustainable and lead to bankruptcy and poor credit. And if you fail to plan for the future, you can end up in foreclosure or even lose your home.
Financial literacy is an important skill to develop, since fewer than half of all Americans could cover a $1,000 emergency without any help. In addition, 40% of all Americans couldn’t cover $400 in an emergency. By becoming financially literate, you will learn how to set up an emergency fund and grow it. This money will help you cover three to six months of expenses.
Financial literacy is a necessary skill that is required to be successful in life. It can be acquired by watching financial gurus on YouTube, reading financial books, listening to podcasts, and consulting with financial advisors. Before investing in stocks or mutual funds, it is important to obtain a solid foundation in financial education.